SC orders action on Supertech unit for misuse of ₹1,500 crore

The Supreme Court demands immediate action against Supertech's subsidiary for misappropriating ₹1,500 crore in the Supernova project, revealing serious financial irregularities.

The Supreme Court on Thursday said that immediate action must be taken against Supertech’s subsidiary firm involved with the Supernova project in Noida after a court-appointed committee, based on an ongoing forensic audit, showed misappropriationof ₹1,500 crore by way of backdated entries in real estate company’s account books.

He said that the committee has appointed Ernst & Young for the forensic audit and has even issued show cause notice to three employees who carried out these changes. (Hindustan Times)

“Immediate action should be taken. This has serious penal consequences,” said a bench of Chief Justice of India (CJI) Surya Kant and justice Joymalya Bagchi. It was told about the financial irregularities in a sealed cover status report submitted by the amicus curiae Rajeev Jain representing the panel.

The three-member committee — headed by justice (retd) MM Kumar,former chief justice of J&K High Court and former NCLT president —was constituted by a court order of December 16, 2025, to take over the management of Supertech Realtors Pvt Ltd (SRPL), a subsidiary of Supertech Group.

Jain said, “Following the court order (of December 16), it has come to light that backdated entries have been made by employees of Supertech Limited in a significant manner. An amount of ₹1,500 crore has been adjusted against backdated entries.”

He said that the committee has appointed Ernst & Young for the forensic audit and has even issued show cause notice to three employees who carried out these changes.

“In view of backdated entries, only a forensic audit will indicate if there was any collusion with the parent Supertech group,” the bench said. Passing a short order, the court allowed the forensic audit that has commenced to continue on the agreed terms and conditions.

The amicus cited further discrepancies in the running of affairs of SRPL. Citing an instance, Jain alleged “asset stripping” where a flat worth ₹2.5 crore was sold by SRPL to a person, later revealed to be a nephew of the Supertech promoter, who did not pay a single penny. Further, the amicus pointed out that this individual took a loan from a non-banking financial institution, which sold the same property to a third party without obtaining any approval.

The Supernova project is a mixed-use real estate project developed on 70,002 square metres of land in Sector 94, Noida comprising residential, commercial, office space, studio apartments, service apartments, and shopping centres at an estimated cost of ₹2,326.14 crore. Of 2,863 housing units sold, possession has been granted for 1,121 units. About 5,251 units are lying unsold as construction is pending at various stages.

The NCLT initiated the corporate insolvency resolution process on June 12, 2024, a decision upheld by the NCLAT in August and later challenged by Supertech promoter RK Arora before the Supreme Court. It was in these proceedings, the December 16 order was passed replacing the resolution professional with the committee.

Tasked with completion of the project work by selecting a new developer, the committee informed the court through the amicus that the loan accounts of SRPL have been classified as fraud by Union Bank of India, which is representing the consortium of the lending banks.

Jain said that the committee needs an initial fund infusion of ₹100 crore which cannot be received into the company accounts till the fraud classification is removed. The court issued notice to Union Bank of India and the Reserve Bank of India (RBI) over the fraud classification that was made in July, 2024.

The court posted the matter for further hearing next week to consider other suggestions made by the amicus, which included a direction to the Noida land owning authority to process registration of pending sub-lease deeds for 497 apartments where payment for the flats is complete. Jain said that the authority is still insisting on payment of dues by the SRPL for completing the registration work.

The court tentatively posted the matter for May 8 to consider other aspects of the project related to structural audit of the project for which the committee is already in talks with Central Building Research Institute (CBRI) at Roorkee (Uttarakhand).

When contacted, Supertech Group spokesperson Rajesh Kumar refused to comment on the development. “We do not wish to comment on the proceedings before the court,” Kumar said.

The committee, besides justice Kumar, has Anoop Kumar Mittal (expert in the field of construction, civil engineering and project management) and Rajeev Mehrotra (expert in financial management). Jain informed the court that one of the members (Mittal) has expressed his desire not to continue. The court accepted the suggestion and agreed to make a suitable replacement.

While appointing the committee, the court on December 16 held there shall be a ‘zero period’ in respect of payment of dues owed to the Noida authority and the financial lenders. This meant that no payments shall be made to these entities till completion of the project and handing over of the dwelling units to the homebuyers.

During this period, the lenders and the authority were restrained by the court to initiate or continue any coercive action against apartments buyers. The order made it clear that as and when any surplus is generated after the amount required for the project, it will be utilised to settle outstanding dues.